Market Perspectives – October 3, 2019

Country News

Algeria: The government agency ONAB returned to the market seeking corn for November shipment. (AgriCensus)

Argentina: Meteorologist Eduardo Sierra of the University of Buenos Aires says that 25 percent of the corn crop area is in mediocre to bad shape due to drought. He has lowered his estimate of 2019/20 corn crop to 40 MMT, a 21 percent reduction from last year’s 51 MMT crop. USDA still has its forecast at 50 MMT. Complicating the situation is a negative in upriver basis as sellers consider the future of export license costs due to political circumstances. (Reuters; AgriCensus)

Brazil: The Mato Grosso Agricultural Economic Research body (IMEA) believes that the region’s corn ethanol presents a new global dynamic, though this month’s corn exports slide lower. (AgriCensus)

Canada: Rainfall has delayed harvesting of a large but lower quality barley crop driving up the malt premium. (FarmLead)

Europe: The EU reported corn imports at 175,000 MT as of September 29, bringing the 2019/20 amount to 4.969 MMT, versus 3.169 MMT in 2018/19. A dry summer has taken its toll on some maize output though yields are very good in the east. The French fall harvest has reached 3 percent. Meanwhile, malting barley yields are quite good but with low protein in France and fluctuations in eastern Europe. (Reuters; AgriCensus; FranceAgriMer)

Turkey: The government agency TMO paid 4 percent more under its most recent tender for barley. (AgriCensus)

Saudi Arabia: The country paid $3/MT more than its last acquisition as it booked 1 MMT of barley. (AgriCensus)

South Korea: The feed buying consortium NOFI continued to buy feed imports despite ASF fears. (AgriCensus)